In the fairytale, his egg misplaced before birth, the ‘ugly duckling’ is born into a flock of ducks. Being ugly, the poor little duck is beaten and ostracised, only to reveal himself as a graceful swan after a troubled youth, admired by all. So it will be with Governor Kuroda-san at the Bank of Japan. […]
Knight Capital’s unfortunate USD 440M loss associated with a software glitch in their trading systems is no reason to ban the practice of algorithmic trading. While we at First Degree do not engage in this kind of activity, we strongly defend the right of any market participant to approach the investment markets in any way […]
“Bond yields have fallen last year, therefore it is unlikely that bonds will go up this year.” This is the same mantra that has been chanted by equity chauvinists for the last decade and every year they have been proven wrong. It is true that yields have fallen, but so have inflationary expectations, corporate gearing […]
http://www.firstdegree.asia/wp-content/uploads/2018/04/logo.png00Timhttp://www.firstdegree.asia/wp-content/uploads/2018/04/logo.pngTim2013-05-06 06:22:062018-05-21 06:22:302013: The Year of the Twist?
What role does the Federal Reserve have to play in the current US debt crisis? This is a simple question with a simple answer…if the US Treasury cannot pay bondholders then the Fed must pick up the tab! Forget about Central Bank independence. The Fed reports into Congress via the US Treasury so they are […]
http://www.firstdegree.asia/wp-content/uploads/2018/04/logo.png00Timhttp://www.firstdegree.asia/wp-content/uploads/2018/04/logo.pngTim2013-05-06 06:21:432018-05-21 06:22:04Where Is The Fed In All Of This?
Survival is a strong instinct. Animals, viruses and even humans go to great lengths to avoid death and extinction. In many cases, the organism’s will to survive can cause others to suffer. Charles Darwin theorised that survival of the fittest generates the strongest societies. Darwin, however, overlooked one institution whose will to survive leads to […]
http://www.firstdegree.asia/wp-content/uploads/2018/04/logo.png00Timhttp://www.firstdegree.asia/wp-content/uploads/2018/04/logo.pngTim2013-05-06 06:20:522018-05-21 06:21:19Eurocrats Trash Their Own Backyard
I have two unrelated comments today: 1. Bernanke’s Fed A good friend of mine forwarded the following YouTube link which perfectly sums up my views and concerns about the conduct of Monetary Policy both at the Fed and across nearly all Central Banks: http://www.youtube.com/watch?v=PTUY16CkS-k&sns=em – The baffling thing about this conversation between two animated bears […]
What are Ben Bernanke and Mario Draghi up to? Both Central Bankers are pursuing extreme monetary experiments. Will they succeed and what will happen if they fail? Let’s consider Ben first. My read of his Jackson Hole speech is that he is on the defensive. Unemployment is his primary focus and he tried to prove […]
http://www.firstdegree.asia/wp-content/uploads/2018/04/logo.png00Timhttp://www.firstdegree.asia/wp-content/uploads/2018/04/logo.pngTim2013-05-06 06:19:332018-05-21 06:20:09Ben and Mario: Extreme Central Bankers
I could never understand how the LIBOR screens carried such power with market participants and on numerous occasions I asked the question “Who in the market actually borrows at that rate?” …well, nobody it seems actually did borrow at that rate judging by the trouble that Barclays and other money centre banks find themselves in. […]
The ‘Hillbilly cycle’ was a well documented price cycle between the price of corn and the price of pigs. Hillbillies in the US were characterised as the swing producers of either corn or pigs. Basically, high corn prices this year would lead the Hillbilly to switch from producing pigs to corn. As the supply of […]
Here is an extract from the minutes of last Tuesday’s BoJ Board meeting: Shirakawa (Governor): Minosan (everyone please listen). Prime Minister Abe-san has set us a 2% inflation target. How are we going to achieve this target? Board members: (collective silence) And that was that … lets face it, what can the BoJ do to […]
http://www.firstdegree.asia/wp-content/uploads/2018/04/logo.png00Timhttp://www.firstdegree.asia/wp-content/uploads/2018/04/logo.pngTim2013-05-06 06:15:422018-05-21 06:16:05The Bank of Japan Needs to Start Thinking Like Investors Not Economists
Gov Kuroda-san: Japan’s Ugliest Duckling
In the fairytale, his egg misplaced before birth, the ‘ugly duckling’ is born into a flock of ducks. Being ugly, the poor little duck is beaten and ostracised, only to reveal himself as a graceful swan after a troubled youth, admired by all. So it will be with Governor Kuroda-san at the Bank of Japan. […]
In Defense of Algorithmic Trading
Knight Capital’s unfortunate USD 440M loss associated with a software glitch in their trading systems is no reason to ban the practice of algorithmic trading. While we at First Degree do not engage in this kind of activity, we strongly defend the right of any market participant to approach the investment markets in any way […]
2013: The Year of the Twist?
“Bond yields have fallen last year, therefore it is unlikely that bonds will go up this year.” This is the same mantra that has been chanted by equity chauvinists for the last decade and every year they have been proven wrong. It is true that yields have fallen, but so have inflationary expectations, corporate gearing […]
Where Is The Fed In All Of This?
What role does the Federal Reserve have to play in the current US debt crisis? This is a simple question with a simple answer…if the US Treasury cannot pay bondholders then the Fed must pick up the tab! Forget about Central Bank independence. The Fed reports into Congress via the US Treasury so they are […]
Eurocrats Trash Their Own Backyard
Survival is a strong instinct. Animals, viruses and even humans go to great lengths to avoid death and extinction. In many cases, the organism’s will to survive can cause others to suffer. Charles Darwin theorised that survival of the fittest generates the strongest societies. Darwin, however, overlooked one institution whose will to survive leads to […]
Bernanke’s Fed and Greece’s PSI
I have two unrelated comments today: 1. Bernanke’s Fed A good friend of mine forwarded the following YouTube link which perfectly sums up my views and concerns about the conduct of Monetary Policy both at the Fed and across nearly all Central Banks: http://www.youtube.com/watch?v=PTUY16CkS-k&sns=em – The baffling thing about this conversation between two animated bears […]
Ben and Mario: Extreme Central Bankers
What are Ben Bernanke and Mario Draghi up to? Both Central Bankers are pursuing extreme monetary experiments. Will they succeed and what will happen if they fail? Let’s consider Ben first. My read of his Jackson Hole speech is that he is on the defensive. Unemployment is his primary focus and he tried to prove […]
LIBOR Today, OTC Markets Tomorrow?
I could never understand how the LIBOR screens carried such power with market participants and on numerous occasions I asked the question “Who in the market actually borrows at that rate?” …well, nobody it seems actually did borrow at that rate judging by the trouble that Barclays and other money centre banks find themselves in. […]
Corn Again!
The ‘Hillbilly cycle’ was a well documented price cycle between the price of corn and the price of pigs. Hillbillies in the US were characterised as the swing producers of either corn or pigs. Basically, high corn prices this year would lead the Hillbilly to switch from producing pigs to corn. As the supply of […]
The Bank of Japan Needs to Start Thinking Like Investors Not Economists
Here is an extract from the minutes of last Tuesday’s BoJ Board meeting: Shirakawa (Governor): Minosan (everyone please listen). Prime Minister Abe-san has set us a 2% inflation target. How are we going to achieve this target? Board members: (collective silence) And that was that … lets face it, what can the BoJ do to […]